Tax Planning Services
with Digby Associates
Managing your tax position can feel complex, but we help you take a clear, considered approach. By understanding your circumstances and long-term goals, we’ll help you make use of available allowances and structure things in a way that works for you.
We help you plan ahead so more of your gains may be retained. Capital Gains Tax planning focuses on timing, available allowances and thoughtful decisions that support your wider financial goals.
We help you understand how Capital Gains Tax may apply to your investments and assets, consider available allowances and reliefs, and plan disposals in a way that supports your wider financial strategy.
Capital Gains Tax can have a meaningful impact on the value realised when selling assets. Without a clear plan, decisions may be made at the wrong time or without fully considering the tax implications.
Taking a considered approach can help you manage when gains are realised, make use of exemptions where available, and ensure decisions remain aligned with your longer-term goals.
We can help you understand your potential exposure, explain the options available, and put a clear plan in place that balances tax efficiency with your broader financial objectives.
There are a number of different strategies to reduce your CGT liability depending on your individual circumstances and objectives.
These could include:
Bed and ISA – selling assets and rebuying them within an ISA to shelter future gains.
Gifting assets to a spouse or civil partner to use both CGT allowances.
Trusts and Family Investment Companies (FICs) to structure wealth tax-efficiently.
Using EIS & SEIS schemes, which offer CGT relief for investments in early-stage companies.
Working with a financial advisor could identify potential strategies for your specific circumstances and financial objectives.
Private Residence Relief (PRR) usually exempts your main home from CGT. However, if you own multiple properties or let out part of your residence, partial CGT may apply.
Working with a financial advisor to ensure you structure your assets can help to mitigate any CGT liability.
For the 2023/24 tax year, UK CGT rates are:
Shares & investments: 20% for higher and additional rate taxpayers.
Property (excluding main residence): 24% for higher and additional rate taxpayers.
The annual CGT allowance is £6,000 (reducing to £3,000 in 2024/25), meaning gains below this amount are tax-free.
We help you protect what you have built and pass on more of your wealth in line with your wishes. Inheritance Tax planning brings clarity, makes use of available allowances, and supports longer-term family planning.
We help you understand how Inheritance Tax may affect your estate, consider available allowances and reliefs, and structure your affairs in a way that supports your longer-term intentions.
Inheritance Tax can have a significant impact on the value of an estate if appropriate planning is not in place. Without a clear approach, more of your wealth may be lost to tax than necessary, and decisions can become more complex for those you leave behind.
Taking a considered, longer-term view can help you make effective use of available allowances, manage potential liabilities, and ensure your estate is passed on in a way that reflects what matters most to you.
We can help you understand your potential exposure, explain the options available, and work with you to put a clear plan in place that supports both your financial goals and your family’s future.
If inheritance tax is owed on an estate and it’s not paid, HMRC can charge interest and penalties. The tax must be paid within six months of the date of death, and failure to do so can lead to legal action and additional charges.
Gifts made during your lifetime can reduce the value of your estate for IHT purposes. Some gifts are exempt, such as small annual gifts or gifts to your spouse. If you give a gift and live for at least seven years after giving it, it’s generally exempt from IHT under the seven-year rule.
The 7-year rule refers to the exemption of gifts made more than seven years before your death from inheritance tax. If you survive for at least seven years after making a gift, it is generally not subject to IHT. However, gifts made within seven years may be subject to tax, with a tapering relief if you survive between 3 and 7 years.
Yes, leaving money to charity can reduce your inheritance tax bill. If you leave at least 10% of your estate to charity, you may qualify for a reduced inheritance tax rate of 36% instead of the standard 40% on the rest of your estate.
Estate planning is the process of arranging how your assets (such as property, money, and possessions) will be managed and distributed after your death.
It’s important because it ensures your wishes are followed, reduces inheritance tax liabilities and helps prevent disputes among beneficiaries. It can also include making arrangements for your long term care if you become unable to make decisions yourself.
Yes, you can gift assets before death, and some gifts may be tax-free if you live for at least seven years after making them (known as the seven-year rule). Smaller gifts may also be exempt from inheritance tax.
If you have any questions regarding wealth management at Digby Associates please get in touch with our team of qualified financial advisers for a no obligation chat.